HPE Forecasts 2021 profit above analysts' expectations, affirms revenue expectation
Hewlett Packard Enterprise on Thursday afternoon forecast profit per share in 2021 ahead of analysts' expectations, driving its shares up slightly in late trading.
HPE CFO Tarek Robiatti said the company expects to turn in profit per share in a range of $1.56 to $1.76, well above consensus for $1.46, according to FactSet.
Tarek added that HPE "continue to be comfortable with the consensus outlook for revenue of $26.9 billion."
HPE shares rose by 26 scents, or 2.6%, to $10.13, in late trading.
Operating profit in the coming year is being helped, in particular, by "operational improvement," said Robiatti.
More details can be found in HPE's formal press release.
Tarek's financial presentation capped off a two-hour virtual presentation with CEO Antonio Neri and key executives such as Keith White, who runs HPE's GreenLake as-a-service platform.
Neri is on a mission to move HPE from selling bits and pieces of software and hardware across the IT stack to being "an as-a-service company." Revenue from GreenLake and other as-a-service said Robbiati, is expected to rise from $900 million in revenue this year to $2.1 billion in 2023, a compounded annual growth rate of roughy 35%.
That compares to total company revenue that is expected to rise by 1% to 3% for the next few years, said Robbiati.
Morevoer, Robbiati reiterated a projection for the annualized recurring revenue, or ARR, component of that as-a-service revenue, to rise faster than the total, by 30% to 40%, consistent with a forecast offered last year.
Hewlett Packard Enterprise CEO Antonio Neri, top center, flanked by executives during Thursday's annual analyst meeting.